CBA ramps up hunt for major Sydney CBD space
Commonwealth Bank has issued a major space requirement in Sydney’s central business district in a move viewed as a precursor to the spin-off of its wealth management and mortgage broking businesses.
The bank flagged the move in June and, in a further shake-up, indicated that it may also sell off its general insurance business, as it refocuses on its core banking operations.
The split it is contemplating would see the new wealth business listed on the Australian Securities Exchange, with its own branding and corporate identity, including a separate headquarters.
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CBA already has a major presence in Sydney, particularly around Darling Harbour, where it occupies a tower in Darling Park, the twin building Darling Quarter, and Commonwealth Bank Place, which was completed last year.
The group is also to move thousands of workers to the ATP in inner-city Redfern. It is now quietly sounding out developers for about up to 30,000sqm of potential space, which could either spark a new tower or fill a major existing building refurbished to meet its needs.
The bank’s requirement is notable for its size as it frequently has smaller tenancy needs of up to 5000sqm that gets quickly filled. The larger requirement was likely related to the needs to find a premises for the proposed demerged company, that would span funds management, financial planning, platforms and mortgage broking, agents said.
The latest leasing brief is separate to a longstanding 30,000-50,000sqm brief the bank has had in the market. Last year, The Australian reported this hunt — for a new headquarters — was zeroing in on the fourth tower proposed for Sydney’s Darling Park complex.
The tower has been proposed by a trio of property companies — GPT Group, Canada’s Brookfield and AMP Capital — and they held talks with the bank about a potential move and, more recently, recut the tower’s design into a more elegant form to satisfy planning authorities.
A CBA spokesman confirmed the space requirement. “We’re seeking expressions of interest for property, and will review submissions with a view to approaching short-listed parties with a request for proposal,” she says.
“This process is part of our usual practice of reviewing our property portfolio in line with requirements of our business.”
The bank is not alone in issuing a major leasing brief in Sydney. US cloud computing company Salesforce, advised by Cushman & Wakefield, has a 25,000sqm space requirement that could suit the “tech alley” around Martin Place or the proposed precinct near Central station. The quantum of the space needed will likely see it shift from Tower Three at Darling Park.
US e-commerce giant Amazon is also keen on expanding its space from beyond its floors in the Citigroup Centre. Software company Microsoft is also in the market as it looks to shift workers closer to the CBD and it is believed to be looking at space in the Locomotive Sheds at Redfern.
The NSW government is also working through proposals put to it after it put a brief out for up to 22,000sq m of space in Sydney CBD or the southern CBD in a bid to amalgamate several agencies.
Property NSW flagged a preference for A-grade office space and agents pointed to ARA Asset Management’s 320 Pitt St, along with other mid-range CBD towers.
This article originally appeared on www.theaustralian.com.au/property.
